Indian Railway to hire IT firm aiming Rs 1,000 crore from data monetization

Indian Railway Catering and Tourism Corporation (IRCTC) has floated a tender for appointing a consultant targeting Rs 1,000 crore revenue from data monetization.
Railway“IRCTC is a reservoir of huge amount of digital data which opens several opportunities for IRCTC for monetisation,” it said in a recently issued tender.

IRCTC’s move to explore data monetisation has raised concerns over data privacy amongst experts and passengers, and lawyers believe it could lead to potential lawsuits.

IRCTC aims to leverage its data assets and market position to drive strong growth in revenue. It said this can be achieved by improving customer experience, expanding the portfolio of products being offered to the customers and by developing new business-lines and partnerships.

IRCTC envisages a revenue generation potential of Rs 1,000 crore through monetisation of its digital assets. It wishes to engage a consulting firm to help in identification, design, and development and roll- out of data monetisation opportunities.

The consultant would be expected to identify opportunities and use cases that IRCTC can pursue for increasing its revenues. This could include new use cases or improvement in existing IRCTC practices. The opportunities can be pursued by IRCTC on its own, or in partnership with other players.

The successful bidder will keep in mind the IRCTC envisaged revenue potential for three years and also advise the PSU on how to monetise data available and implement strategies while staying within the existing laws and Supreme Court Judgements.

The implementation strategies of Bidder shall comply with various Acts or laws including IT Act 2000 and its amendments, User data privacy laws including GDPR (General Data Protection Regulation) and current ‘Personal Data Protection Bill 2018 of India, and accordingly propose the business models for monetization of Digital Assets,” IRCTC said.

The project will have an initial contract of 18-months and would be on a build-operate-transfer basis.

IRCTC has extended the deadline for submitting bids from August 29 to September 8.

IRCTC reported net profit of Rs 246 crore on revenue of Rs 853 crore for the quarter ended June 31, 2022.